SOCSO or Social Security Organization also locally referred as PERKESO (Pertubuhan Keselamatan Sosial). It is a Malaysian government body that has started their curriculum in this country to provide active employees working in private companies with social securities. This program has been enlisted under the Employee Social Security Act 1969.
It is a mandatory program for all entitled employees working in private sectors. Once a Malaysian employee has starts the duty, he/she need to proceed for the SOCSO account registration in Malaysia. This registration completion must not exceed more than 30 days once the employee has started the duty.
Following are the core responsibilities of SOCSO in Malaysia:
- Enlisting private companies, employers and employees under those companies
- Registration of SOCSO scheme by employers and employees of companies in Malaysia
- Collecting and managing contributions from both employers and employees
- Providing companies’ employees with provision of physical and vocational rehabilitation benefits
- Setting up various awareness campaigns for the wellbeing of employees on occupational safety and hazard.
- Financing workers and or their dependents during unfortunate circumstances such as accidents, injuries etc.
Steps of SOCSO account registration in Malaysia
There are several steps to register an account for the SOCSO contribution in Malaysia. This program can be undertaken by either employer, employees. The typical registration process for SOCSO account has been mentioned below:
- To open the SOCSO profile, a company employer or employee first needs to draft the Form 1 and Form 2.
- The registration can be carried out from the SOCSO counter.
- When in SOCSO counter, employer of the company registers for the SOCSO program behalf of the employee. The employer acts as the representative of his/her company employee in this case.
- During registration procedures, SOCSO counter ask for supporting documents related to the employee, which the employer or applicant must provide.
- In case an employer is unable to attend the registration procedure in SOCSO counter, he/she can send a representative along with the authorization letter. Without this letter, the representative will be counted invalid.
- SOCSO profiling can be done via Malaysian Corporate Identity or My CoID process as well. Here an employer has to submit the registration forms along with other relevant documents to the SOCSO behalf of an employee.
- The supporting documents define the business entity type.
- Employer must provide detail credential data such as ID number of employer and employees which should be already mentioned in Form 2
- A concentration should be given on the aspect that the data in Form 2 (Which is the employee registration form), should match the detail information of the employee.
Managing employee records
It is the responsibility of an employer to keep and manage all records and credentials of each employees working in his/her employee. SOCSO also suggest this, as Form 2 during SOCSO registration demands all these credentials in a formal pattern. These records for employee must be maintained in either manual paper form for all employees or via electronic data record process. Each record of an employee must include following data:
- Name of the employee
- Identification number
- Date of joining in the company
- Designation in the company
- Amount of SOCSO contribution per month
- Type of employee contribution
- Monthly wages of the employee
- Company allowance or bonus (If applicable)
According to the guideline for SOCSO registration in Malaysia, a record such as the above one must be maintained for all employees working in a company. This is a vital responsibility of an employer to maintain and manage these records and come up with these records for any employee, if that worker wishes to register for the SOCSO by their own. Along with the record credentials mentioned above, employers are also suggested to keep all records of payment of SOCSO contribution of the last 7 years after the joining of the employee in the company.
What are the registration processes of SOCSO in Malaysia?
To know in depth registration process of SOCSO contribution, visit the link and read about SOCSO- Social Security Organization.
Do I need to register for SOCSO?
If you are a private company employer or employee, SOCSO registration must be done within 30 days of employee appointment in the company. The registration can be done either via SOCSO counter or by My CoID method.
What is a SOCSO registration number?
SOCSO registration number in Malaysia is the ID Card Number issued by the National Registration Department of Malaysia.
Is SOCSO mandatory in Malaysia?
Yes for all employees working in private sector, who’s earning is lower than RM3000/month. The SOCSO contribution, however, is optional for employee whose salary goes above RM3000 per month in Malaysia.
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